GBP/USD Daily Outlook

Daily Pivots: (S1) 1.4370; (P) 1.4503; (R1) 1.4585; More

At this point, intraday bias in GBP.USD remains on the downside and the correction from 1.4778 could still extend further lower. However, as mentioned before, rise from 1.3654 is still expected to continue as long as 1.4230 cluster support holds. Above 1.4634 minor resistance will flip intraday bias back to the upside for 1.4478 first. Also, rise from 1.3654 is treated as the third leg of consolidation from 1.3503 and is expected to extend further towards 1.4984 resistance next. However, break of 1.4230 will argue that it has completed and will turn short term outlook bearish for 1.3654 support.

In the bigger picture, a medium term bottom is in place at 1.3503 after GBP/USD completed the five wave sequence from 2.0158 (1.7445, 1.8668, 1.4557, 1.5722, 1.3503). Consolidation from 1.3503 is still in progress and has started the third leg which could extend to 100% projection of 1.3503 to 1.4984 from 1.3654 at 1.5135 or further to 1.5722 resistance. On the downside, below 1.4230 will turn focus back to 1.3503 low. But after all, decisive break of 1.3503 is needed to confirm long term down trend resumption. Otherwise, further range trading could still be seen. .

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